- 2 October 2016
History Repeats Itself!
Japan, overnight on 21st September, kept its interest rate at a negative 0.1% and to stimulate the economy expanded its money supply to 100% of GDP. The US and Europe are at 20%. In comparison in Australia, our RBA has a high rate of +1.5% and is wondering why our Australian dollar is climbing and our tourism and income from exports falling.
At the same time that Japan is trying to expand its economy, in Australia, since 2009, small business and consumers have been in a credit squeeze as per the chart we showed last week. It is worthwhile showing it again.
No wonder Turnbull won by only one seat. At a similar time that there was a Federal election in a credit squeeze, which was 1961, again the Government held on with just one seat.
History repeats itself!
Regards,
Kevin Young
Related Posts
Why the February RBA Decision Matters More Than the Headline
With the Reserve Bank of Australia heading into its February interest rate meeting, borrower attention is back on rates, repayments and loan structures. Recent economic data has shifted expectations, and uncertainty is now the dominant theme. Inflation has proven slower to cool than anticipated, and that has placed...
What World Data Privacy Day Means for Property Buyers
Each year on January 28, World Data Privacy Day serves as a global reminder of the importance of protecting personal information in an increasingly digital world. While data privacy is often associated with passwords, apps and online security, it is just as critical when it comes to property transactions. Buying or...
From February 2026, Borrowing Gets Harder. Plan Before It Does.
From 1 February 2026 , new lending rules will change how Australian banks assess higher borrowing levels. For many buyers and investors, the outcome will not hinge on the property they choose. It will hinge on access to finance. If buying, investing or refinancing is part of your plans in 2026, this change matters....